Karnataka Bank Ltd has reported a net profit of ₹336.07 crore for the second quarter of FY25, marking a 1.76% year-on-year increase compared to ₹330.26 crore in Q2 FY24. The bank’s board of directors approved the financial results for the quarter and half-year ending September 30, 2024, during a meeting on Wednesday.
Net interest income (NII) for the quarter rose by 1.36% to ₹833.56 crore, up from ₹822.41 crore in the same period last year. Fee-based income also saw a rise, reaching ₹222.75 crore compared to ₹196.58 crore in Q2 FY24.
However, the bank’s net interest margin (NIM) declined to 3.23% from 3.62% in the corresponding quarter last year. On the positive side, gross non-performing assets (NPAs) decreased to 3.21%, down from 3.47% in the previous year, reflecting improved asset quality. Net NPAs saw a slight increase, rising to 1.46% from 1.36% in Q2 FY24.
The bank’s capital adequacy ratio strengthened to 17.58% as of September 30, 2024, compared to 16.20% a year earlier. Total business on a gross basis grew by 12.03% year-on-year, reaching ₹1,75,284.08 crore. Deposits increased by 11.66% to ₹99,967.99 crore, while gross advances surged to ₹75,316.09 crore, a rise from ₹66,935.98 crore in Q2 FY24.
Retail advances posted strong growth, increasing by 12.20% YoY, while the credit-deposit (CD) ratio stood at 75.34%. The bank’s liquidity coverage ratio (LCR) remained robust at 143.93%, comfortably above the regulatory requirement of 100%.
Srikrishnan H, Managing Director and CEO Karnataka Bank commented, “Karnataka Bank has shown stable financial performance in Q2 FY25 with improvements in asset quality and retail growth. Our strategic focus will continue to drive performance for the rest of the year.”
Executive Director Sekhar Rao added, “We are pleased with the progress made in controlling NPAs and improving operational efficiency. Our digital initiatives and risk management efforts have positioned the bank well for future growth.”
